South African Truckers Swell Strikers in Country to 100,000

By Carli Cooke -
Sep 27, 2012

South African truckers swelled the
ranks of workers on strike to almost 100,000, escalating a
conflict with mine owners and police that has shut 39 percent of
the nation’s gold production and led to 46 deaths.

“This truck drivers’ protest has been accompanied by
serious provocations, intimidations, public violence and even
elements of criminality,” Police Minister Nathi Mthethwa said
today in a statement. Workers must refrain from intimidating and
assaulting those still working, or destroying property, he said.

Security forces yesterday fired rubber bullets at strikers
at a factory in Howick, National Union of Metalworkers of South
Africa Regional Secretary Mbuso Ngubane said today by mobile
phone. About 20,000 transportation industry workers are on
strike, the South African Press Association reported today.

Wildcat strikes have spread as workers sidelined
traditional representatives for negotiating with management
including the National Union of Mineworkers, a backer of the
governing political party. Julius Malema, expelled by the ruling
African National Congress, has called for workers to disrupt
mines and the state to take over the operations.

The call to make mines ungovernable by Malema could be
considered economic sabotage, the NUM’s Secretary General Frans Baleni said Sept. 4. Malema canceled a plan to address workers
today at Impala Platinum Holdings Ltd.’s Rustenburg operation.

Fresh Demands

Impala faces fresh demands from workers after agreeing to
higher salaries to end a strike during January and February. The
company said today in a statement that a pay review will add 4.8
percent to its wage bill starting next month.

A six-week walkout at Lonmin Plc (LMI)’s Marikana mine erupted
into violence, with 46 killed including 34 shot by police. The
miners won wage gains of as much as 22 percent, more than four
times the August inflation rate. Miners have also struck at all
of AngloGold Ashanti Ltd. (ANG)’s mines in South Africa, which has the
world’s largest platinum, chrome and manganese reserves.

AngloGold, the third-largest gold producer, employs more
than 32,000 in South Africa, its 2011 annual report shows.

Gold Fields Ltd. (GFI), the fourth largest producer of the metal,
said most of the 15,000 employees at its KDC West site are on
strike, along with 9,000 at its Beatrix mine. It said today
there aren’t any talks scheduled with employees.

Gold prices have risen 9 percent since June 30 and are set
for the biggest quarterly gain since the second quarter of 2010.

Anglo American

Strikes at Anglo American Platinum Ltd. (AMS), the largest
producer of the metal, may lead to job losses after at least
21,000 staff halted work without following required dispute
resolution procedures, Chief Executive Officer Chris Griffith
said yesterday in Rustenburg, northwest of Johannesburg.

The company began disciplinary action today that may lead
to dismissals, the company said in an e-mailed statement.

Disruption may spread as mine workers demand “the Lonmin
settlement,” David Davis, an analyst at SBG Securities Ltd.,
said in a note yesterday. Workers at Coal of Africa Ltd.’s
Mooiplaats mine, employing about 370 people, have also downed
tools.

Harmony Gold Mining Co., the nation’s third-largest
producer, is unaffected by labor unrest, it said today in an e-
mailed response to a query. Xstrata Plc’s South African alloys
unit hasn’t received any demands, it also said today by e-mail.
BHP Billiton Ltd. said labor relations at its operations in
South Africa “are normal.”

South Africa’s mining industry employed 498,141 workers in
2010, according to figures on the Chamber of Mines’ website.

Moody’s Corp. downgraded South Africa’s bond rating by one
step to Baa1 from A3 today, citing the “challenges posed by a
negative investment climate” as well as “increased concerns
about South Africa’s future political stability.”